Mr Virbhadra Singh union minister for steel said that India is expected to become the 2nd largest steel producing nation by 2012 with a targeted production capacity of 120 million tonnes.

Chairing the meeting of the consultative committee attached to his ministry Mr Singh said “During the last one year, while action on many of the crucial agenda items were completed, those involving long term targets like the modernization and expansion programs of PSUs like Steel Authority of India and Rashtriya Ispat Nigam Limited are also at an advanced stage of progress”

He said that India is the third largest producer of crude steel in the world, surpassing developed countries like USA and Russia.

The minister said that Indian steel industry contributes to nearly 2% of GDP and employs over 0.5 million people. Informing the members, he said that the steel sector continues to be one of the major contributors to national exchequer and in 2009-10 up to end of third quarter the net profit earned by all the profit making PSUs taken together was to the tune of INR 8008.57 crore.

Mr Virbhadra Singh said that “In 2009-10, the steel sector was able to make a recovery after the sluggish growth on account of global downturn and adverse market condition of 2008-09. The resurgence in automotive appliances, capital goods and construction sectors have directly contributed to this positive performance. During the year, the industry achieved a total capacity utilization of 88.9% showing increase in production of crude steel and finished steel as well as consumption. The year 2010-11 has begun on a note of optimism for the steel sector and especially for the major PSUs under the Ministry’s administrative control like SAIL, RINL and NMDC Ltd.”